The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consumer spending, increased investments by businesses, reduced rate of unemployment, and reduction in government cut. Some analysts have also stated that the country’s economy will strengthen in 2014 with an average of 2.7 percent or more. However, these predictions can only be understood through an analysis of the current macroeconomic situation in the United States. Current Macroeconomic Situation: According to Payne (2014), the U.S. economic growth will strengthen in this year with an average of 2.7 percent because of various factors including the strengthening of consumer and business confidence. The other factor that will contribute to the strengthening of the country’s economic growth is Europe’s emergence from its long slumber, a trend that will brighten the prospects of foreign sales. However, this economic growth will largely be limited by ongoing government deficit reduction. As compared to the first half of 2013, economic conditions are already better since growth increased with an average of 3.7 percent in the second half of 2013. Consequently, expectations of increased economic growth in the United States are rising as people believe that this will be the best year since the tribulations of 2008 global recession. Generally, America’s GDP growth will become stronger in 2014 averaging at least 2.7 percent becaus... ... middle of paper ... ... the same. The Federal Open Market Committee should base its employment policy on outlook for the level of employment or unemployment through substantial improvement in labor market outlook. In conclusion, the current macroeconomic situation in the United States is characterized by moderate growth because of better economic conditions that were brought by the events of 2013. The country has experienced moderate economic growth since the 2008 global recession but has shown real signs of momentum. While the country is not concerned about recession or inflation, the rate of unemployment is still a major challenge despite improved consumer and business confidence. As a result, the Federal Open Market Committee or Federal Reserve System needs to adopt fiscal and monetary policy initiatives that help address the unemployment issue and promote high economic growth.
This paper aims to discuss the Short-Term and Long-Term Impacts of the Great Recession and
2009, the unemployment rate decreased gradually. This statistic shows that the policies of United States are very successful.
It is to my belief that no one can possibly predict the future of the economy. Because of this we are faced with many questions that cannot be easily answered. Will the economy recover drastically or simply continue to increase moderately? Or could the economy in turn go into a recession? “There's been plenty of good news about the U.S. economy… employment is expanding (2.4 million new payroll jobs in the last year); inflation remains low (less than a 2 percent rate in the past quarter); the stock market is higher (up 11 percent on the Dow from its November low), and business investment is impressive (rising at a 14 percent rate in late 2004).” (1) It is my opinion that unless something drastic happens in the world today, positive or negative, the economy will continue to increase at a modest rate. Even though no one quite knows which way our economy is heading, there are many economic concepts designed to help measure positive and negative changes that can show us how well we are or are not doing. These concepts include examples such as gross domestic product (GDP), business cycle, and unemployment rate.
Many companies today, must operate in a challenging and volatile economic environment. The United States got off to a weaker-than-predicted start in 2015: with unemployment rates continuing to fall, and currently stand around 5.4%. Consumer spending, which accounts for approximately two thirds of all economic activity, has been modest so far in 2015 (Schwartz, New York Times).
In 2009, the United States economy began to recover from the Great Recession. To aid in the recovery, the newly elected president Barak Obama created the American Recovery and Reinvestment Act better known as the second of two “Stimulus Packages.” Pa...
In 2001, after the longest period of economic expansion the country has witnessed historically, the United States of America entered into its tenth recession since the end of World War II. A recession transpires when at least two quarters of a year are plagued by a sharp downturn of the country’s gross domestic product or GDP. More specifically, when a recession occurs, unemployment increases resulting in less consumer spending which is associated with poor business performances. Studies by the National Bureau of Economic Research (NBER) concluded that during March of that year, a pinnacle in business occurrences declared the end of the expansion and the arrival of an inevitable and damaging though short recession. In a state of urgency, the president at the time, George Bush, encouraged Congress to ratify a stimulus package plan which would seek to improve the standing of the economy. The NBER theorized that the infamous act of terrorism which took place on September 11th placed an even greater strain on the already damaged financial system because it wreaked havoc on many markets and businesses such as the airline industry. Many times, a recession occurs due to economic disasters that are enough of an impact on society to disrupt expenditures of large-scale businesses and individual citizen households. Consequently, aggregate demand decreases along with employment. Factors such as international conflicts, technological fluctuations and the endeavors of monetary legislators all contribute to the overall American economic status.
This paper will be a discussion of the current economic condition of the United States and this writer’s opinion on how it can be changed. Unemployment is high and needs to be reduced to full employment. We will explore the inflation rate, GDP growth and other factors of our current economic situation.
Recent data suggest that the U.S. economy is on stable ground, although performance is uneven. According to an advance estimate, GDP increased at a seasonally adjusted annualized rate of 1.5% in Q3. The result, which was well below the 3.9% expansion tallied in Q2, reflected weak fixed investment and exports, although private consumption, the motor of the economy, grew at a healthy pace. The October jobs report grabbed headlines, with payrolls surging, unemployment falling to 5.0% and other measures pointing to solid labor market conditions. Consumer spending should
... for the economy. Concerning the economy of the United States it is still alarming. Neal Asbury, writer from Money News stated that US can recover their economy by reducing their taxes and regulations to grow small businesses and then rise the employment rat. They need also to ensure banks are healthy and they can provide money to entrepreneurs and they also need to expand the global trade by lowering the barriers against the manufacturers. ( Asbury 2013)
...t a winter can have on people preventing them to go out to look for a job, the core inclination that this variable seems to be taking appears to be favorable for the economy. Therefore, one can expect to presence upcoming favorable improvements in terms of hiring and unemployment rate, but ideally it would be better to not make rambunctious assumptions in this aspect, and see how the real state of the economy in terms of unemployment develops over the next months.
Unexpected changes in the unemployment rate have a statistically significant effect on the economy. These unemployment rate changes affect consumer confidence because the public identifies the unemployment rate with the economy's health. To the extent that changes in the unemployment rate influence households' perceptions and expectations of economic conditions, they also affect spending, output, and employment. Sources, such as The University of Central Florida and The Livingston Survey have released forecasts of the US unemployment rate.
After a long recovery from lingering recession, the World Bank indicated the global economic growth rate is forecast to accelerate from 2.4 percent to 3.2 percent in 2014from the U.S., China and other major developed countries. (U.S. News & World Report, 2014) Hence, many private analysts forecast consumer demand is increasing due to better off financially spending more for services and products. (Los Angeles Times, 2014)
It seems that it is apparent that the current macroeconomics situation in US is bit difficult in numerous ways. The situation relating to employment, inflation, monetary and fiscal policies has been detrimental to US citizens who have undergone through an trembling economy for a lot of years. When there is enlargement in monetary activity, then the affluence will be experienced by a larger number of fiscal entities, in addition to industries, firms, workers, owners of capital as well as others. When there is a fall in fiscal activity, then the segment of companies’ encounters with decrease in production and further sectors of the financial system with the decrease in consumption. Accordingly due to reduced production, the companies lay off certain employees or condensed their hours in addition to their wages. These pessimistic trends have an effect on the decline of standard of living as well as excellence of life of inhabitants and augment the deficiency rate, which positively represent the most complicated difficulty for each nation. Consequently, economists attempt to determine the causes of these affairs (stages) of trade cycles and formulate suggestions concerning what could be done by way of suitable economic policies to tone down such depressing phenomena of depression. Recession ought not to be observed as incident from which there is no way out, but as a very severe indicator that point out that the financial system is unhealthy and we ought to take dynamic measures to its quicker recuperation.
Job gains in the USA are expected to continue at a moderate pace. This, however, will have a negative effect on corporate earnings. However, increase in household cash flow due to low-interest rates helped consumers to reduce their mortgage payments and consumer debts. This reduces the fear of a recession in next 12 months.
The current state of the economy in the United States has been slow in recent months. While the economy is not currently in a recession, we may eventually fall victim to the first recession we’ve had in nearly ten years. The economy in general is showing growth, just not much. It will be difficult to predict what exactly will happen to the US economy in the future. Many economists do not agree on what will become of the economy. Some feel that we will begin a recession over the next year, and some feel that there is significant policy implementation that will allow us to dodge a recession and regain our economic strength. There are many factors that make up the US economy. The means in which I will discuss the overall growth and current status of the economy is by analyzing the Gross Domestic Product, and discuss the factors that cause it to rise and fall.